If you are injured on the job, your company may be liable for any medical expenses or lost wages that you incur. It is also possible that an injury could lead to a disability which would have an impact on your income. No one wants to think about these scenarios, but most workers do indeed experience some kind of injury while at work. The question is how are personal injury claims calculated and does personal injury compensation affect benefits?
In any workplace accident or job-related illness, an injured worker is often torn between duty to the company and responsibility for themselves. When you are thinking about filing a personal injury compensation claim, it is difficult to know where to start and how to proceed with things correctly so that both parties are satisfied.
Claims and Benefits
Most personal injury compensation claims are calculated on a win, lose, and continue basis. For this percentage to be determined, it is important to first take a look at how the process is calculated.
Most employers will pay benefits to injured employees who can show that they are unable to continue working due to an injury. This is usually done in the form of an interim payment. With an interim payment, the injured person will receive money from the company to cover medical expenses and other costs associated with being injured.
Sometimes an interim payment is paid for only a certain time, but in many cases, personal injury compensation settlements will include an interim payment that is paid until the settlement amount is settled. The injured person then has the option of continuing to receive payments from the company (similar to a salary) or taking the money as a whole payment, investing it, and letting it accrue interest.
Calculations and Taxes
The determination of how long you are unable to work is going to be based on the medical professional’s opinion and how extensive the injury is. It will also depend on how much treatments cost and whether you need special or aftercare for the injury.
Employers are required to pay tax on amounts that exceed the earning capacity of an individual. When an individual is receiving a lump sum payment in connection with personal injury compensation they will need to pay tax on the lump sum. There is often no ceiling on how much you can receive as a lump sum and the tax amount will depend on the current standing of the tax system. It is important to understand what your tax situation is before negotiating settlements over personal injury interim payments.
It is also important to remember that you must inform the insurance company you are being paid for the lump sum settlement plus a percentage of your benefits. If you have an injury and choose to pursue a personal injury compensation claim against the other party you must inform the insurance company within thirty days.
Your benefits must be processed by the insurance company within sixty days after the date you have told the insurance company. There are exceptions to this requirement and you should discuss these options with your lawyer. If you are injured at work you must inform your employer within sixty days after the accident. Don’t know what law firm you should hire? Our recommendation would be Sinnamon Lawyers.
After you have settled your compensation claim you may decide to make additional payments to what is called a personal injury trust. It is just one of many ways to make additional payments on the injury settlement. This is a way for you to have a steady stream of income in place while making payments to the other person who was injured. This is especially helpful when one of the spouses has their own business and is unable to continue working as they are looking after you.
Remember to consider any alternatives you may have such as selling your settlement, taking out a loan or paying for continuing medical care. It is always better to take out small loans than large lump sum loans. Also, if you have other financial obligations you should talk with your personal injury lawyer about how you could get extra money for living expenses while waiting for your settlements.
If in doubt you should contact your lawyer and they will be able to iron out any confusion and chat to you about what is best for your situation.